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2015 (9) TMI 490 - AT - Income TaxAddition on unexplained share capital under section 68 - CIT(A) deleted addition - Held that:- CIT(A) was not justified in deleting the addition made by the AO particularly when the assessee failed to produce the concerned parties. At the same time, it also appears that the AO without considering the documents furnished by the assessee in the form of share applications, copy of bank account from where money was paid, copy of acknowledgment of Income Tax Return, copy of the balance sheet etc. and made the addition. It is also noticed that the confirmation furnished by the assessee were doubt full which is evident from the confirmation placed at page no. 28 of the assessee's paper book, claimed to have been received from M/s Chandra Buildcon Pvt. Ltd. and had been signed by Kavita, but it was mentioned that the said confirmation was given by Surbhi Jain, Director. We, therefore, by considering the totality of the facts as discussed here in above deem it appropriate to remand this issue back to the file of the AO to be adjudicated afresh in accordance with law after providing due and reasonable opportunities of being heard to the assessee. - Decided in favour of revenue for statistical purposes. Disallowance of salary - CIT(A) deleted addition - Held that:- AO while making the disallowance @ 50% had not given any basis or cogent reasons. The ld. CIT(A) also accepted the contention of the assessee by simply stating that a business is in a running stage and the employees were paid actually and that the quantum of income cannot decide as to whether the entire salary paid was for the purpose of business or not. He also observed that the employees will have to be paid to keep business activities alive. However, nothing was brought on record to substantiate that the payment on account of salary was made for the business purposes in regular course of business. Accordingly, this issue is also set aside to the file of the AO. - Decided in favour of revenue for statistical purposes.
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